5 Internet Payday Loans
This is my first post, but I've been checking out the advice everyone's given for the last couple of weeks. I've gotten into a payday loan spiral as several others have, and am trying to get out of it. From the research I've done, it appears IPDLs are not regulated in Kentucky(where I'm located), and are therefore illegal.
I've found the form letter to email the five internet companies I have my loans through, but haven't emailed them yet. I have also opened a new account at a different bank, and will be closing my old account today.
I've not yet defaulted on any of my loans. So I guess one of my questions is, should I wait until I do default on my loans to send the C&D emails, or should I go ahead and send them after I close my bank account?
Also, I've over paid on a couple of my loans, should I request a refund on those?
On the loans I have only paid the finance/renewal fees on, do those fees count towards paying down the principle?
Thank you in advance for your assistance! :D
Here are the rundowns of the loans:
mypaydayloan.com - Total borrowed since 7/20/2010 = $1,314.00
Total paid = $2,958.48
Fees paid = $1,644.48
Cash In A Wink - Total borrowed since 9/9/2010 = $1,150.00*
Total paid = $1,173.75
* I just borrowed $500 on 9/1/2011 and have not paid anything on that amount, but it is included in the "total borrowed" amount.
Over Paid = $23.75
BCD Group (River Elk Services) - Total Borrowed since 8/4/2011 = $250.00
Total Paid = $150.00 in fees only, no principle paid
Owe = $100.00 (if fees count towards principle)
Nationalpayday.com - Total Borrowed since 6/3/2011 = $400.00
Total Paid = $303.75
Owe = $96.25
Gentlebreezeonline.com - Total Borrowed since 8/31/2011 = $300.00
Total Paid = $0.00
Owe = $300.00
None of your lenders are legal in KY, as you said. Yes, send t
None of your lenders are legal in KY, as you said.
Yes, send the illegal lender letters/emails as soon as your account is closed and you're sure nothing will reopen it.
Yes, anything you've paid (fees, interest, etc.) can be subtracted from the principal.
Yes, ask for refunds on any that you have overpaid.
And, if you receive a refund, do NOT cash the check at your new bank or deposit it into you new account. They'll track it. Cash it at a check cashing place and pay the fee. It's worth it.
If you still owe, set up payments by mail with a money order or via a prepaid debit card.
Be sure to file your complaints with the KY AG and the FTC.
Thanks!
Thanks so much OhioGal! I really appreciate it. I just hope I can get all of this taken care of.
As the lenders are not licensed in your state, so you can get ri
As the lenders are not licensed in your state, so you can get rid of the debts by paying them only the principal amount. Illegal lenders won???t be able to take any legal action against you. If you have any complaints against them, then contact with the Kentucky Office of Financial Institutions. Their contact detail is as follows:
# Address - 1025 Capital Center Drive, Suite 200 Frankfort KY 40601
# Phone - (800) 223-2579
# Fax - (502) 573-8787
Ok...I closed my account yesterday...It's completely closed, and
Ok...I closed my account yesterday...It's completely closed, and NOTHING can be withdrawn from it if the companies try to take the money anyway. I just sent the emails to everyone...hoping they actually comply instead of calling.
The loans aren't due until tomorrow, but before I sent the letters out, I got several calls from National Payday asking about it.
Does anyone have any horror stories or advice about handling the five companies I have these loans with? Even though the loans are illegal in KY, I still feel really bad about sending them these letters, and I do plan on paying those I still owe money to. If I had known that they were illegal here, I never would have taken them out to begin with! :(
First response from BCD Group!
Hello again! I just got my first response from the IPDLs...How should I respond to them. The laws I sent them CLEARLY state that internet payday loans are not regulated by the state of KY and are considered illegal...but apparently they don't see it like that. Please help!!! Their reponse is listed below:
We have received and reviewed your correspondence regarding your complaint with BCD Group, LLC.
Please note that River Elk Services does not do business as BCD Group LLC. River Elk Services is the customer service center for the lender BCD Group LLC. In addition, they are not located in Minnesota as your copy and paste letter states.
The information that you have collected online does not apply to your situation, you are referring to check deferment. It is our opinion that it does not apply to our internet business model. This is based on sound advice from our legal department.
The money was lent to you in good faith with the understanding that you would abide by the terms detailed in your loan contract. We upheld our end of the agreement by crediting the funds to your account in a timely manner. The Loan Note and Disclosure that you e-signed and thereby agreed to is very detailed and clear so as not to cause any confusion to the borrower, and meets all the Truth-In-Lending and Reg Z requirements as prescribed by Federal statute.
Upon review of your account history, you clearly knew all terms and conditions of your loan in writing, and by telephone which you were given the terms of this loan verbally. We have all the legal contracts you signed, in which you agreed to terms and conditions of the loan.
Please be advised that if you should stop deductions through your bank, your account will be submitted to an outside collection agency.
Respectfully,
Compliance Dept
What should I do!?!?!?!?
I emailed all of the IPDL companies on September 14 after closing my bank account. So far, Nationalpayday.com and BCD Group are the only companies that have complied with my request for communication via email only.
Once I re-sent the emails, none of the companies except Cash In A Wink have contacted me via telephone. Even after I re-sent the letter to Cash In A Wink, they continued to call my references. I also just received a call from their collections department that stated that they were sending paperwork for a wage assignment, when clearly in the email I sent it stated that I revoked any and all wage assignments I may have signed.
I guess my question is, what should I do??? Any advice will be appreciated!
one thing
i didn't see where you file AG,AND FTC complaints against these lenders.if you didn't do so.if you have file follow-ups.let your AG know that pdl plecostomus are harrasing you.
Thanks!
Thanks Paulmergel! I actually sent the complaints to the AG today as well as the KY Dept of Financial Institutions, so hopefully they'll be able to solve this for me!